The price of Bitcoin remains under pressure despite bullish rhetoric at the Miami Bitcoin Conference over the weekend. Unless it regains $44k, the technical picture points to more weakness ahead.
Bitcoin fans have had a rough May. The digital asset’s price fell from record-high levels above $60k to almost $30k. It fell as low as $32k, before bouncing back to $40k. But every bounce was met with more selling pressure that persisted even through the most-awaited event for Bitcoin fans – the Bitcoin conference that took place last weekend.
Held in Miami, the event was not only about Bitcoin, but about cryptocurrencies or digital assets, and their role in the new economy. DeFi is a major topic among both economists and entrepreneurs, and the event in Miami hosted VIPs famous for their embrace of Bitcoin, such as Jack Dorsey, Twitter’s CEO.
Yet,despite the overall bullishness and optimism expressed by the participants, the market looks weak. Bitcoin sets the tone for the overall cryptocurrency market, and without a meaningful bounce in the price of Bitcoin, the other coins have a hard time to decouple from the main cryptoccurency’s price action.
Elon Musk – The Villain
The bearish trend for Bitcoin started with Elon Musk, the CEO of Tesla, tweeting his concerns about the environmental damage from mining the coins. He reversed the decision that Tesla accepts Bitcoin as payment for its cars, and expressed interest for other coins.
Musk’s support of Dogecoin, another cryptocurrency, is well known. Also Tesla’s $1.5 billion investment in Bitcoin in the first quarter of the year made headlines for several days after it was announced.
Yet, despite harming Tesla’s investment, and probably his own personal wealth, Elon Musk is accredited as the one that triggered Bitcoin’s decline from $64k to the current levels .
Over 12,000 people attended the Bitcoin Conference in Miami this past weekend. Huge lines formed at the entry as organisers did not expect such interest.
The optimism around blockchain and the distributed ledger technology has made many institutional investors reconsider their views on Bitcoin and the cryptocurrency market. But the fact that Bitcoin’s price has literally halved in one month will weigh heavy for any long-term investor.